Suppose that I'm either an owner or part owner (through shares) of Example Corporation. One day I get a phone call from Warren Buffett. He says that Berkshire Hathaway is interested in buying ExampleCorp.
I'm no dummy and I know that past performance is not a guarantee of future performance, and Warren has made mistakes in the past, but it seems to me that an offer from him indicates that he thinks my company is
- likely to stick around for the long term
For the purposes of this question, assume he's right and ExampleCorp is all of those things. In that case, why would any owner want to sell a profitable, well-run business that's likely to be around to give returns well into the foreseeable future? Or, to phrase the question another way, why is it rational for Warren Buffett to continue to make offers to purchase companies when an offer from him is an indication that the company would be just fine without him?